B2Gold Bets Big on Colombia with $740 Million Gold Mine Project

B2Gold, a Canadian mining company, is moving ahead with a $740 million investment to build and operate a large open-pit gold mine in northwest Colombia.

The company announced that its Gramalote project, located in Antioquia’s San Roque municipality, is technically, economically, and environmentally viable, following a completed feasibility study.

The project will produce around 2.3 million ounces of gold over 13 years, with the processing plant designed to handle 6 million tonnes of ore annually.

B2Gold expects to produce 227,000 ounces per year during the first five years, then 177,000 ounces per year after that. The estimated gold recovery rate will be about 96 percent, using conventional, proven methods.

Based on a $2,500 per ounce gold price, the company values the project’s after-tax net present value (NPV) at $941 million, with a possible upside of $1.7 billion if gold prices stay high.

The mine’s all-in sustaining cost is projected to be $985 per ounce, keeping it competitive globally. B2Gold expects the project to pay for itself in about 3.4 years.

Although many permits remain valid from a past version of the project, the company must now revise its environmental impact study and working plan because of changes in design.

The modifications involve relocation of infrastructure and a reduced processing plant size. B2Gold plans to submit the updated studies by late 2025 or early 2026.

B2Gold’s Gramalote Acquisition Boosts Colombia Mining

The company says it will continue working with local communities, focus on programs for resettlement, safety, health, and small-scale miner integration. The mine area is already an active mining zone with basic infrastructure in place, which supports operations.

B2Gold fully acquired the Gramalote project in 2023 by buying out its partner, allowing full control and more flexibility in development decisions. The move fits the company’s global strategy to focus on assets that offer solid returns with manageable risks.

It currently operates mines in Mali, Namibia, the Philippines, and Canada. Gramalote marks one of the largest mining investments in Colombia in recent years.

It reflects how mid-size, lower-cost gold projects can still offer high value, especially when companies control development closely. This project could generate thousands of jobs and bring long-term economic activity to the region.

For Colombia, attracting responsible investment in mining helps build revenue and infrastructure without relying heavily on external debt. For B2Gold, it’s a calculated move to lock in future gold production at a stable cost and strong return.